Credit manager doValue Greece obtains $548 million bad loan mandate

The new 100 and 200 euro banknotes with new security features are displayed at the headquarters of Germany’s Federal Reserve Bundesbank in Frankfurt, Germany May 21, 2019. REUTERS/Kai Pfaffenbach

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ATHENS, April 5 (Reuters) – Credit manager doValue Greece, a subsidiary of Italy’s biggest debt collection firm doValue (DOVA.MI), said on Tuesday it had been awarded a new loan servicing mandate for a bad loan from 500 million euros ($548.4 million). portfolio named Project Neptune.

The portfolio includes small and medium-sized business loans secured by real estate.

In 2020, an entity affiliated with funds managed by Fortress Investment Group purchased the portfolio of Alpha Bank (ACBr.AT), one of the four largest lenders in Greece, with a gross book value of around 1.1 billion euros. Fortress has entrusted a transition service to the Greek loan management company Cepal.

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DoValue will assume management of approximately 50% of the initial portfolio consisting of non-performing loans for small businesses secured by real estate assets in Greece.

Greek banks cleaned up their balance sheets of NPLs through outright sales and securitizations in a bid to reach single-digit ratios to bring them closer to eurozone averages.

Last October, doValue reached an agreement with the National Bank (NBGr.AT), one of Greece’s largest lenders by assets, to manage a €5.7 billion bad debt portfolio.

Verona-based doValue was created in 2015 when UniCredit (CRDI.MI) spun off its debt servicing arm as part of a deal with Fortress Investment Group, the US fund that was later acquired by SoftBank.

($1 = 0.9118 euros)

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Reporting by George Georgiopoulos; Editing by Mike Harrison

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